US Rejects Aluminum Tariff Relief Request from Ford
The U.S. government has thus far denied requests from Ford Motor and other American automakers for relief from aluminum tariffs following fires at a Novelis facility that caused supply chain disruptions for vehicles, the Wall Street Journal reported on Tuesday.
According to the report, last week, Ford requested help from the Trump administration, seeking relief from tariffs until Novelis' aluminum rolling facility in Oswego, New York resumes full operations, as stated by sources familiar with the discussions.
The talks are part of continuous dialogues between car manufacturers and the administration regarding the effects of President Donald Trump's tariffs, the report stated, noting that the government has not moved from its position.
Novelis' Oswego facility, that provides materials for Ford's profitable F-150 truck series, ceased operations last year following two fires. In February, parent company Hindalco announced its intention to resume operations at the plant by the close of the second quarter.
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Although Novelis has been compensating for reduced output by sourcing aluminium from its facilities in South Korea and Europe, the imported metal faces a 50percent duty under the updated tariff regulations.
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The facility also supplies Stellantis and General Motors, among other car manufacturers, but Ford is a key customer as its trucks primarily utilize an aluminum structure.
Ford announced a nearly 50percent decline in quarterly profit in February to $1 billion as it adjusted to increased costs from supply shortages resulting from the blaze at Novelis' Oswego facility.
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The U.S. dollar dropped to its lowest point in a month as the euro, yen, Australian, and New Zealand dollars surged significantly during Asian trading on Wednesday. This followed President Donald Trump's declaration of a two-week truce with Iran, which alleviated international tensions.